a. Calculate the base-case operating cash flow and NPV. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. What is the sensitivity of NPV to changes in the sales figure? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. c. If there is a 450-unit decrease in projected sales, how much would the NPV change? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

a. Calculate the base-case operating cash flow and NPV. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. What is the sensitivity of NPV to changes in the sales figure? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. c. If there is a 450-unit decrease in projected sales, how much would the NPV change? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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a. Find the present values of the following cash flow streams at a 9% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent. 0 1 2 3 4 Stream A Stream B Stream A: $ $0 $0 5 $100 $350 $350 $350 $300 $300 $350 $350 $350 $100 Stream B: $ b. What are the PVS of the streams at a 0% discount rate? Round your answers to the nearest dollar. Stream A: $ Stream B: $
1.) what is the break-even in dollar sales? 2.) what is the margin of safety percentage? 3.) what is the degree of operating leverage ? (Round your answer to 2 decimal places.) 4.) using the degree of operating leverage and without changing anything, calculate the percentage change in net operating income if unit sales increase by 20% ?
1. Discounted Payback (DCPB) and IRR analysis. Use the cash flow situation (table below) to answer. a. Determine the DCPB based on a MARR rate of 8.0% b. Determine the IRR Year Cash Flow (in $1000's) 0 1 -5500 +1500 2 +1800 3 +1500 4 +1800 5 6 +1500 +1800 7 +1500
Example Cash and cash equivalents Blank 1 Step 1: Blank 1; - Blank 2; = Blank 3; Step 2: Blank 4; ÷ Blank 5; = Blank 6 % Blank 2 Blank 3 Blank 4 Blank 5 Blank 6 Add your answer Add your answer Add your answer Add your answer Calculate the 2022 Horizontal Analysis variance of "Sales Revenue" in %. Fill in the equations using the financial statements provided (no symbols or commas) and the % should be in a XX.XX format: Add your answer 2022 Add your answer $330 Last saved 3:49:34 PM 2021 $360 2022 2021 # -$30 13 OF Answer / 2021 -0.083333333 JESTIONS REMAINING Update to % -8.30%
b. Disregard the assumptions in Part a. What is the depreciable basis? What are the annual depreciation expenses? c. Calculate the annual sales revenues and costs (other than depreciation). Why is it important to include inflation when estimating cash flows? d. Calculate annual net operating profit after sales (NOPAT). Then calculate the operating cash flows.
The Profitability Index (PI) is a financial metric that depends only on the Present Value (PV) of expected future cash inflows. This statement is: a False. b Only partly true. c True d Only partly false.
Given: Cash transactions as shown in cash flow diagram. %24 g = 4%/yr (positive transactions decreases from year to year) i = 10% per year 1 3 4. 5 7 12 13 14 15 Yrs g = 5%/yr (negative transactions become more negative) Required: (i) The net equivalent value at year 0 (Po)
a. Find the present values of the following cash flow streams at an 8% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent. 0 1 2 3 4 5 Stream A $0 $100 $350 $350 $350 $300 Stream B $0 $300 $350 $350 $350 $100 Stream A: $ Stream B: $ b. What are the PVs of the streams at a 0% discount rate? Round your answers to the nearest dollar. Stream A: $ Stream B: $
a. Find the present values of the following cash flow streams at a 6% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent. 1 3 4 Stream A $0 $150 $400 $400 $400 $300 Stream B $0 $300 $400 $400 $400 $150 Stream A: $ Stream B: $ b. What are the PVs of the streams at a 0% discount rate? Round your answers to the nearest dollar. Stream A: $ Stream B: $
Net Present Value Use Exhibit 128.1 and Exhibit 128.2 to locate the present value of an annuity of $1, which is the amount to be multiplied times the future annual cash flow amount. Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. a. Campbell Manufacturing is considering the purchase of a new welding system. The cash benefits will be $480,000 per year. The system costs $2,650,000 and will lam 10 years. b. Evee Cardenas is interested in investing in a women's specialty shop. The cost of the investment is $180,000. She estimates that the return from owning her own sta will be $35,000 per year. She estimates that the shop will have a useful life of 6 years. c. Barker Company calculated the NPV of a project and found it to be $63,900. The project's life was estimated to be 8 years. The required rate of return used for the NPV calculation was 10%. The project was expected to produce annual after-tax cash flows of $135,000. Required: 1.…

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